NEA expects 1-digit system losses in power co-ops in 2 years

The National Electrification Administration (NEA) is optimistic that all electric cooperatives (ECs) in the country will be able to bring down their system loss targets to single-digit levels within the next two years.

NEA administrator Edita S. Bueno noted that as of end-2007, the national average system loss of ECs has already gone down to 13.87 percent from the 2006 level of 14.29 percent.

System loss refers to electricity lost in the process of distribution to customers, mainly caused by pilferage, illegal connections and technical glitches.

With this, Bueno has underscored the importance of carrying out the country’s Rural Electrification Program (REP). “Indeed, REP is a very important infrastructure which enables the countryside to be in the mainstream of development.”

She pointed out that the improvement in the national average system loss resulted to energy savings of 50.5 million kilowatthours (kwh) and a capacity savings of 10 megavoltampere (MVA), approximately equivalent to P285 million.

According to Bueno, the reduction could be attributed to the 76 ECs which reduced their systems losses in 2007 compared to only 41 ECs in 2006.

Based on NEA data, ECs in Region VII ECs posted the lowest average at 9.88 percent, followed by Region IX with 10.38 percent, Region X with 11.82 percent and Region VI with 12.35 percent.

In the same data, Region III showed significant improvement in system loss reduction from a high of 26 percent in 1995 to 13 percent in 2007.

As part of its supervisory function, NEA has made available a financial credit facility for system loss reduction. It also extends technical, institutional and management assistance for this purpose.

“NEA will see to it that these losses are translated into savings for and by the ECs so that the consumers can benefit from it through their upgraded distribution lines, quality service and even lower electricity rates,” Bueno added.